Corporate Income Tax (CIT)

It is a tax charged on a company’s total income sources at the end of the company’s accounting income year. 

Companies pay tax on their business and investment income also known as gains and profits, which does not include expenses made to obtain the income.

The tax rate applicable to a company depends on the industry as follows:

Item	Rate%
Income of a Trust	25
Company principally engaged in the hotel industry	22
Company engaged in the export of non- traditional exports	8
Financial institutions from loans granted to farming enterprises	20
Financial institutions from loans granted to a leasing company	20
Manufacturing companies located in regional capitals  (except Accra & Tema)	18.5
Manufacturing companies located outside Accra, Tema and the regional capitals	12.5
Free Zone Enterprises after 10 years tax holiday (on domestic sales)	25
Free Zone Enterprises after 10 years tax holiday (on export of goods and services)	15
Petroleum income tax	35
Mineral income tax	35

The tax rate applicable to a company depends on the industry as follows:

Item	Rate%
Income of a Trust	25
Company principally engaged in the hotel industry	22
Company engaged in the export of non- traditional exports	8
Financial institutions from loans granted to farming enterprises	20
Financial institutions from loans granted to a leasing company	20
Manufacturing companies located in regional capitals  (except Accra & Tema)	18.5
Manufacturing companies located outside Accra, Tema and the regional capitals	12.5
Free Zone Enterprises after 10 years tax holiday (on domestic sales)	25
Free Zone Enterprises after 10 years tax holiday (on export of goods and services)	15
Petroleum income tax	35
Mineral income tax	35

The following businesses pay 1% tax during their tax holidays. These businesses pay the actual tax rates after their tax holidays.

Item	Rate%
Agro processing business conducted wholly in the country for the first five (5) years	25
Cocoa-by product business wholly in the country for the first five (5) years.	25
Tree crop farming for the first  ten (10) years	25
Cash crops or livestock( excluding cattle) for first 5 years	25
Cattle farming for first 10 years	25
Waste processing business for first 7 years	25
Income derived from a certified low cost housing company low cost housing company	25

Young entrepreneurs who are into businesses such as manufacturing, information and communication technology, agro processing, energy production, waste processing, tourism and creative arts, horticulture and medicinal plants have five years tax holidays and after five years the following rates apply

Item	Rate%
Accra and Tema	15
Other regional capitals outside Tema and Accra	12.5
Outside, Accra, Tema and other regional capitals	10
The three northern regions	5